Microsoft’s New Standardised Billing Structure: What You Need to Know
Thursday 21st November 2024
Microsoft is set to introduce a new standardised billing structure across all new commerce purchasing motions, including direct online purchases, Cloud Solution Providers (CSP), and Microsoft Customer Agreements for Enterprise (MCA-E). This change, effective from 1st April 2025, aims to streamline billing processes and provide a more consistent experience for customers.
Key Features of the New Billing Structure
- Monthly Billing Plans for Annual Subscriptions:
- Microsoft will offer a new monthly billing option for annual subscriptions. This plan will be priced 5% higher than the upfront annual payment option. This flexibility allows customers to manage cash flow more effectively by spreading payments over the year.
- Standardised Pricing Update: Starting 1st April 2025, all new and renewing monthly billing plans for annual subscriptions will see a price update. This applies to all products with per-user monthly billing plans.
Options for Deferring Potential Price Increases
To help manage the transition and potential price increases, Bytes provide several options:
-
- Early Renewal: Customers can renew their subscriptions before the 1st April 2025, deadline to lock in current pricing for another term.
- Annual Payment Option: Opting for the annual upfront payment plan can help avoid the 5% increase associated with the new monthly billing option.
- Promotional Discounts: Microsoft occasionally offers promotions, such as a 15% discount on Microsoft 365 E5 annual subscriptions for new customers, available from January 1 to June 30, 2025. Taking advantage of these promotions can mitigate the impact of price changes.
Bytes can help you understand these changes and plan accordingly, helping to navigate the new billing structure with minimal disruption and continue to benefit from Microsoft’s comprehensive suite of services. Get in touch with us at [email protected].
Want to keep informed? Sign up to our Newsletter